fortunes through hot money. >> he called his plays idiot-proof. >> the people who look like idiots are those who invested a lot. he said his assets were trillions of dollars. turned out there wasn't much there. >> thank you. >> thank you all for watching "street signs." >> "closing bell" is next. see you tomorrow. >> hi, everybody, welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. my move higher today for the s&p 500 would be another all-time high. >> after three straight weeks of gains for the dow and the s&p. i mean, it's been a stellar couple of months, really, for the markets. even during a time when it's typically a down period. i'm bill griffeth, by the way.

the markets waiting for something. what could it be? oh, apple reports in the next hour. those numbers will be hitting the tape right after the bell rings. they're widely anticipated, even more so now with the new iphones in the mix. they want to know if the new iphone 5c gained any traction in its first quarter of sales. and then you know who else will be watching very closely? that would be activist investor carl icahn who wants that huge 115 billion stock buy back. this is the place to be for instant information and analysis when those numbers are released in an hour. >> forget the glitches. it's when the new health care law actually works that many middle class americans are feeling the pain. citizens using huge and unexpected increases in premiums. two of them are with us. >> one premium went up ten times. ten times. >> that's amazing.

>> it's been a trading day for the dow. we're up 16 right now, just off the highs at 15,586. they're just waiting for the apple numbers, the fed meeting this week. we're halfway through earning season, so a lot more to come. nasdaq has been trading a little lower here. similar trading pattern. down a fraction at 3943. the s&p, as maria mentioned, any positive close would be another new all-time high following a three-week win streak for that ind index. up 4.25 at 1764. >> will we or won't we close at another all-time high for the standard & poor's? let's check in with bob pisani. >> it's very cautious. we're hitting new highs. defensive names, consumer stocks moved us. look how we're moving into

territory. kimberly-clark, clorox, snapple. put up the old names, tesla, facebook, priceline, yelp. they're down again today. you sell off one sector, another sector steps forward to assume some kind of leadership position. facebook, by the way, reporting on wednesday. chinese solar stocks bounced back because deutsche bank, someone came out and said, the selling has been overdone. for several days they've been selling off like this. i'll tell you what worries me most of all, guys, those pending home sales numbers. four months in a row, look at that, that's a one-year chart. that's not a good chart to look at. four months in a row they've been to the downside. the home building stocks, i'm surprised they're not down even more today. most are down about 1%, as can you see there. that is not a good number. we hope to see some better numbers. existing home sales are going to be weak because they lead existing home sales usually by a couple months. finally, want to mention, the health care stocks.

bristol-myers, sales of their diabetes drug down a little bit. bristle myers had a great report in their cancer drug data over the weekend appeared to be very, very good. back to you. >> thanks, bob. let's talk about what's going on in the markets today and this week. we have lindsey back from stern ag, troy from skybridge capital, barry james from james advantage funds and welcome back, rick santelli. lindsey, what are we expecting from the fed this week? anybody expecting them to do something with tapering? that's off the table, isn't it? >> it really is. heading into the september fmoc meeting, it was crystal clear the fed did not have enough momentum to justify a change in policy. given tuesday's very disappointing employment report, it's crystal clear that tapering is off the table for november and most likely through the end of the year. >> why is the market acting like this? we're just sitting here, acting

like we're waiting for something to happen. >> i think they want to see the dissension in the ranks, what kind of conversation. we saw reports earlier of officials wanting to tie a decline in monthly purchases to a very specific target. whether that's the unemployment rate. they want to see -- the market wants to see some sort of decision-making in the fed's statement. >> and, troy, you're not expecting tapering until march, correct? >> no. we think will be the soonest they would taper. >> the soonest? >> yeah. depends if this slow patch of growth -- >> >> you have so buy stocks. >> you have to buy stocks. they have the most upside. can you see the next 12 months upside. when we get closering to tapering, that's when you need to be nervous. we need to be as aggressive as

we can. >> barry, i think you disagree, don't you? >> i think the market still has some upside, although the risks are definitely elevated. you have high margin debt today. you've also got high valuations relative to the value of the overall economy. and you've got a number of folks that are kind of pulling the plug on some stocks. maybe a little early, but nonetheless, that gives a little warning sign. so, we think we're in a topping phase. we still have upside. we're still positive in the near term. but kind of two-handed situation. we've got good and bad and then in between the market's heading higher. >> santelli, what are you expecting from the fed this week? >> very little change. i don't see through the first quarter, maybe through the second quarter, many changes.

markets will have a hard time getting a strong rally knowing tapering is probably not going to happen any time soon. when when everything is right with the world, interest rates have to normalize at some point and i think the fed outstayed their initial reservation at hotel subsidy. >> i think the world always does look better through a morphine haze, i'm told at least. rick, i want to ask you, i mentioned on twitter today how bank of america issued two different reports. one, they turned bullish on gold and the other they said with all the tapering that wire going to see very, very low inflation for the foreseeable future. what am i missing there?

on the latter, i'm not sure it has to do with the fed. i think inflation is like wearing out your running shoes. i personally think gold will be to the upside. i don't see an immediate need to invest in it right now. >> on equities, troy, you say you want to buy stocks, you want to be aggressive. what does that mean? does that mean technology? >> cyclicals in general. also a little geographic lean toward europe now. you look at research for most underlining hedge fund managers, 10% to 20% upside in europe and 5% to 15% in the u.s.

cyclicals should lead once we get past this patch here. >> lindsey, what are you buying right now? >> just one point, what's so interesting about the market's perception, how it's shifted so dramatic even though underlying fundamentals have been so weak, now with just one additional datapoint, it seems everyone has taken tapering off the table until first quarter. it's amazing how quickly the sentiments have changed in a short period of time. >> yes, the fickle markets and the economy. >> thank you, everybody. >> ten minutes into this hour, so 50 minutes left in the trading session here. and the dow's up a whopping nine points right now. the s&p is in record territory right now. a gain of four points. if you like your doctor, you will be able to keep your doctor, period. if you like to keep your health care plan, you will be able to keep your health care plan, period. >> unfortunately, we know that is not the case.

many americans are being told they cannot keep their plans. what's worse, the new plans will cost a lot more than they thought. two different people tell us their stories coming next. meantime, all eyes are on apple and the tech giant reports earnings after the bell tonight. we have full team coverage of what could be a market-moving report for tomorrow. that's coming up tonight right here on "closing bell." and also coming, apple's results, will that justify carl icahn justification for the buyback? we'll hear from both sides of the story later on "closing bell." the american dream is of a better future, a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach.

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secretary of health and human services kathleen sebelius said this week that president obama did not know about the healthcare.gov's technical problems until after the launch, in a statement she delivered from under the bus. >> yes, when "saturday night live" makes your signature legislation a weekly punch line, that's never a good thing. and it could get worse as congress prepares to hold hearings tomorrow on the troubled rollout. bertha coombs with the latest on the as obama care turns saga.

>> feels like a soap ra, doesn't it? house officials are holding daily briefings on healthcare.gov but short on details. the federal data system was down much of sunday due to an outage provided by verizon's unit. it affected all of the states as well. now, on the conference call today, spokespersons for cms didn't say what caused the verizon server fail you're or how they're prooevening it from happening again. we don't know if it happened because of one of the fixes that tripped it up. last week testifying before congress, the contractor who built the federal hub, qssi, said it was working properly. on friday qssi was made general contractor in charge of overseeing the technical fixes now needed to bring the website up to speed. now two health officials who have been in charge are the ones who are going to be on the hot seat. tomorrow marilyn tabner,

administrator for cms, centers for medicaid and medicare, testifies before the house ways and means committee. those will be the questions. and then on wednesday, front and center, kathleen sebelius, house energy and commerce. again, they're going to ask her if the president didn't mean, when did you know and why, perhaps, didn't you delay the beginning of the open enrollment? she did have discretion to do that. guys? >> bertha, thank you so much. while washington scrambles to fix these technical issues, some middle class americans are find, the cost of the affordable care act is now less affordable than before. at least for them. >> let's meet them right now. debora, real estate agent in california. diane is a real estate agent in florida. ladies, welcome to both of you. debora, let's start with you. how much are you paying now and how much will you pay beginning in january, assuming you get another deal -- another comparable plan? >> right.

i'm currently paying $293 a month. a comparable plan, which i must say i still don't know what is in the comparable plan with anthem blue cross will be $484 a month. >> now, this is because you were with health net, which didn't meet minimum requirements of obama care health care plan so the state of california decided to phase those plans out, start everybody with a clean slate and you had to find a plan with minimum requirements, correct? >> that's correct. it's not health net. it's anthem blue cross. >> i thought your old was health net. >> no, anthem blue cross. >> i stand corrected on that. you're pretty upset about that? >> very upset. obviously by now would he all know what we were promised in the plan is really not what we're getting. we were supposed to get cheaper plans with better coverage.

and in reality, particularly at least in my case, i'm getting a lesser plan because i very well may not be able to keep my doctors or my drug formulary. and i'm paying 65% more for the privilege. >> what about you, diane, you're also paying a lot more? give us the numbers. >> big number. >> right now i'm paying $54 a month. actually, they bill me quarterly so it's $162. and the new plan is going to be $591 a month. >> it's almost ten times more. >> ten times more than what i'm making -- i'm paying. >> i know about california, what they're doing out there. what happened in florida, why is yours going up so much? >> because they are saying that our plan that we currently have doesn't co-coincide with what is

required with obama care. there's minimal requirements. but, actually, i'm very happy with the plan i have now. >> you mean -- >> it covers what i need to have it cover. >> but you -- but you're not going to be able to use the plan you have now, right? >> that's correct. they gave me until november 1st, which is only a few days away, to make up my mind if i want to try some -- you know, get another plan, but the problem is, the website is down until the end of november. what they offered was i could stay on the plan until the end of december and automatically roll -- enroll me into the new plan at $591 a month. if i don't pay it in full by january 1st, then they would drop me. and if i decide to go back in, i'd have to start all over again. >> debora, as i understand it, there in california, for the higher premium you'll pay, you'll get a smaller deductible and lower out of pocket expenses

for medical treatments, is that right? i mean, is there sort of an offset there for the higher premium you have to pay? >> not that i've discovered so far. in fact, i was just taking a quick look at the other blue cross plans that i would be able to go into. and the reality is, that they're the same -- they have the same deductible i currently have, which is $5,000. and my co-pay would be the same or more. and i'd like to make one other point here. the defenders of the plan keep saying that plans like mine are inferi inferior. they are not inferior. it is not an inferior plan if i'm getting the coverage i need. i don't need coverage. i don't need maternity care. i don't need prenatal care. there are lots of things that i

don't need that i am being forced to pay for. >> that's really a good point, actually. so, what are you going to do? you plan to go without health insurance now? >> i think that's a very likely possibility because -- >> you'd just pay the penalty then? >> yeah. which really upsets me because i've never in my life been without medical insurance. and that -- and that's another point. you know, it is not a plus. we're all trying to get -- i'm all for having everybody have health insurance, believe me, but what does it benefit our society if you provide it or make it available to one person and take it away from another who's had it all their life? >> yeah, you know, i mean -- let's face it. diane, you're caught in the middle there. it's unfortunate. there are a lot of people who have employer-sponsored programs that they will be able to keep what they have at the rates they have, but you're in a special situation where you're having to

get a new plan because as they add more higher-risk individuals, your state would lose money if they didn't raise your premiums at the same time, so you had to go to a different plan to raise that premium. i'm curious, did you support obama care to begin with? were you in favor of this program? >> actually, no. well, initially, i thought it was going to be a good plan. and then it got to the point where it seemed like i was asking questions and no one really understood the plan. all the things we were told that we could keep what we have for now, and now that doesn't seem to be the case. and then when i had this letter arrive, it just blew me away. >> when did you start asking the questions, after they passed it? >> yes. >> i mean, people were -- it was such a high concept at that time, nobody understood the nuts and bolts at that time. what about you, were you in favor of it? >> i was in favor of it.

but i was in favor of the plan that they said was going to be. not the plan that we've gotten. and it's just -- you know, honestly, i hate to say it, but it's like bait and switch. >> yeah. so, deb remarks you may go without health care. what about you, diane, are you going to go without health care and pay the penalty? how are you going to deal with this? >> i might have to do the same thing. being an independent contractor, i don't have anyone to chip in to my health care costs. so, that might be the way to go until i can find something. >> ladies, thanks very much for joining us, telling your stories. we appreciate it. we'll keep watching, that obviously. thanks very much. 40 minutes before the closing bell sounds for the day. a market losing altitude quick. the dow is up but just a fraction. the s&p 500 still in uncharter the territory. if we close with a gain on the standard & poor's, we'll hit another all-time high there. >> when we come back, after a red hot ipo, shares of this mystery company have gone under

water. we'll see if the so-called ugly duckling has the potential to turn into a swan and if you should be buying it while it's still an ugly duckling. remember this bold prediction by brazilian billionaire telling me he would be the world's richest man? >> it's just a question of time, i'm sorry. so, i don't know if i'm going to pass him on the right side or left side, but it's going to happen. >> well, now he's on the verge of filing for bankruptcy protection. how did this happen in such a short period of time? 30 plus billion dollars wiped out. the kaegsary tale is coming up.

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welcome back. netflix was left for dead after it dramatically hiked prices a few years ago but now price is north of $400 a share. are there other ugly ducklings? dominic chu. >> we've been talking about the stocks that may have the possibility of turning into something greater. one of the things we're looking at is price to sales. that's one valuation metric and one of the metrics we use to funnel down some of the stocks that we're looking at. this stock is a $50 stock and it's trading at a price to sales

ratio of 1.6. you're paying $1.60 in stock price for every $1 in sales. this stock is in a very highly competitive online travel industry. that, of course, we're talking about expedia. the stock down about 19% so far year to date, but may be due for a bit of an upswing. let's talk about the other stock. this particular one, up about $30 per share. that's the current level of the stock. it's down 19%, 20%, just in the past three months. and it trades with a price of sales ratio of 1.8, or $1.80 for every $1 in sales. this company has a splash zone associated with it. yes, we're talking about shamu and seaworld because this stock is down 19%, like we said. but maybe if the tides turn right for seaworld, could head higher. overall, we've gone through all these different companies in a very unscientific basic look at two-factor model for how to pick

stocks. a lot of professional money managers will take all these factor, put them together in multiple combinations to come up with some of these names and, perhaps, others. maria, bill, some ugly ducklings may not be turning to swans but it's one way money managers look to pick stocks. back to you. >> let's talk about it. is the ugly duckling strategy a good one for individual investors to think about or in most cases, are these ugly for a good reason? kevin is the ugly duckling strategy, he says marry them while they're ugly, they might get beautiful later. gary says those stocks look like that for a reason and investors should usually avoid them. good to see you both. thanks for joining us again. kevin, why do you think this is a good strategy? >> well, i'm always in favor of buying a swan at a duck price. the key is, after all, knowing whether or not knowing what you're dealing with is a swan. we have a number of companies we

have to know about other than just price alone. >> like what? >> first of all, you want to know that the company is going to be around. to do that, you want to ask about what kind of level of profitability they have, consistently profitable, what does the balance sheet look like? that's all very important. what does the competitive landscape look like? what's the expect's competitive advantage? once you're satisfied there, then it's just a question of, well, whatever reason the stock's down, is the problem fixable, something that's internal to the company that could be turned around, and if you're convinced that you've got a good company that has to be around and the problem can be fixed and reflected in the valuation, then i see no reason why not to buy that company. >> what about you, oliver, what are the screens you look at to determine whether or not a stock is cheap for a reason or if, in fact, it's a great opportunity? >> you know, maria, we're generally speaking growth at a reasonable price investors, which means we look for all the factors that make an attractive valuation. more than anything else or just as importantly, we want to make sure that the business plan is a

solid business plan, that there's good growth opportunity in the sector in the industry and that they're executing that business plan. typically speaking when a sfok has been beaten up, it's because they have failed on one of those levels. either the landscape has shifted and they're no longer in a good industry, or they failed on their business plan that's turning into a turn-around story. look f you have a crystal ball and you know what's going to happen next and whether they're going to be able to turn around or not, great. then an ugly duckling is the way to go. let's remember, as you pointed out in your previous segment, maria, the s&p is probably going to close at a new all-time high. if a stock is down 20% in this market, it's probably because there's something wrong. there's better places for investors to put their money. dividend-paying stocks, look at companies with great growth stories behind them. don't try to catch a falling knife. >> kevin, the stock we were highlighting, that dom was highlighting, he expedia, down 18% this year on an up year. is that the kind of candidate you'd look at as a possible buy here?

>> we look at anything that fits what we were talking about bl. i'm not prepared to make a recommendation about netflix. you have health care sectors that been beat down, technology has been beat down. a lot of areas you can find value. there was a company long ago called ibm that 20 years ago fell out of favor because they thought their business was toast when netted working came around. obviously, ibm survived. if you can find companies with good franchising, that will be around, operating at an attractive value, sometimes it hurts to go against the crowd. there's a psychological value. it's certainly rewarding if you can find companies that will stick around and you can buy them at reasonable prices. >> that's the trick. gentlemen, thank you very much. >> thank you. >> thank you. >> 30 minutes to go here. the dow, we were hearing from art cashin, the bias is to the downside slightly.

like everything today, there's been very little volatility. the s&p hanging onto a gain. still an all-time high territory. >> we've already seen some of that sell pressure really impact these averages. up next, we're taking the pulse of the commercial real estate industry when i speak exclusively to bill rudin. >> on the anniversary of hurricane sandy and its impact. also "consumer reports" reliability ratings are in for the first time on tesla's model s. the results are rather surprising. we'll tell you how that car is faring and what it could mean for this momentum stock. that's coming up later on the "closing bell." the most free re, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors

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welcome back. dominic chu, what's going on with amazon? >> amazon is lower, bill. it's kind of drifting near session lows today. they're being helped to the downside by a recommendation of sell over at standpoint research, they've also attached a $280 price target to the stock, citing of other things valuation. also, this stock could be, quote/unquote, dead mane for years to come. another thing to pay attention for this particular call, there are concerns about consumer spending going into the year 2014-2015. amazon to the downside, helped

along by that recommendation of sell from standpoint. >> we're less than an hour away from apple's earnings report. josh lipton has a look at what we'll see from that report. josh? >> yeah, bill. investors have piled into apple since hitting a low of $398. that stock is now up some 35%. can the run continue or will investors sell the news? here's what the street expects. eps of $7.96 on revenue of $36.9 billion. product segment, it's all about the iphones. they represent 50% of total revenue. looking for apple to have shipped 32 million units. one question will be the mix between the 5s and demand for the 5c. as for ipads, that's about 20% of total revenue. and i was looking for apple to move 14.5 million units. as for growth margin, that's expected to clock in at 38.6%. there had been concern apple wouldn't be able to sustain gross margins but they have kept prices higher than expected.

we'll find out the answers to all those questions in just about an hour. >> thank you, josh. josh lipton. we're also looking at tomorrow's one-year anniversary of superstorm sandy. can you believe it's been one year ago? it ravaged the east coast, ruined a number of areas in downtown manhattan with flooding, not to mention new jersey. real estate invest erbil rudin has a number of properties in that region. he joins me exclusively. we were outside one year ago talking about the devastation sandy had. where are we one year later? >> as i predicted, we'd be back, with tremendous leadership from the mayor and governor and our congressional delegation, we got the federal money. it took a lot of effort to get that done, but we got the money that needed to be put back into recovery in terms of homes, commercial spaces, residents. there's tremendous positive things going on. if you walk around the city, walk around downtown as opposed to a year ago when we were stepping over water and in

water. the recovery's been amazing. >> rudin has 4 million feet residential space. where is the big opportunity for you and for folks out there looking to rent, looking to buy? >> well, all over the city. i mean, i think the legacy of mayor bloomberg is going to be the five borough -- you know, all the things he's done through every borough. we're about to open -- we opened our sales office for a project we're building in the west village not too far from here. and sales have been incredible just in a very short period of time we've opened up for business. >> so, take us back five years. you know, five years ago we had the financial crisis. last year we had superstorm sandy. this has been, you know -- >> you go back to 9/11. so, it shows the resiliency and the strength of our city and that, you know, i mean, just in this year alone, since sandy, 5 million leases have been done

downtown with a million of that from tenants who weren't in downtown. we just hit a very large renewal at our building at one battery. there's tremendous amount of activity, the sale of jpmorgan chase's headquarters, you know, a block away from here, you know from a chinese company. the capital flows continue to happen in the city. >> that was a big deal. this really is an iconic building that jpmorgan chase building, it's going to the chinese. >> well, it exemplifies the strength of the city and the recovery, because if you said to me, anyone, a year ago that that building be sold for over $700 million, most people would say no. i predicted when we were standing out in the street that downtown would recover. >> i remember. and you were right. give us some more sort of projects that signify this recovery and are prices going up for those big investors watching right now. and they want to take more commercial space, is this much more expensive today? >> it's more expensive than it was a year ago but still

tremendous opportunities. you'll see it on the east side of downtown, the west side of downtown. the recovery is amazing. howard hughes corporation just announced a huge redevelopment of the south sea port, the trade center happening and everything in between. it's all -- it's all really positive. >> are you seeing a lot of foreign money come into new york right now? >> no question about it. a lot of foreign money, domestic money, pension funds, investors. all over the world people want to invest in new york because of the tremendous opportunities on a long-term play. >> has the level of rates been helpful? obviously, we're talking about rock bottom rates. >> no question. the interest rate, the way they are right now is very, very positive. both short-term and long term. long term has come down a little bit since the government shutdown ended. so, you know, that's very, very positive for investment opportunities. >> going forward, you've got, you know, interest rates are clearly going to move up at some point, although larry fink told us last week he isn't expecting tapering until june of 2014.

you also have a mayor's race happening in new york. bill deblasio in a position to raise taxes. he told you what he's going to do. he's going to take taxes up. if he wins, does that put a crimp in anything? do rates go higher? >> in terms of the mayor's race we'll see in the next couple of weeks. whoever it is, will try to continue the positive job growth, the diversification of our economy, technology -- focused on technology. a lot of the companies moving downtown, midtown south are getting priced out. i think whoever that mayor is, whether it's lodo or de blasio, he'll continue to make jobs, continuous to be the capital of the world in terms of trying to attract and retain the best and brightest and continue to drive crime down and public safety and a liveable city. go to brooklyn. you see the tremendous amount of people living and working in

brooklyn today, queens, all over the city great growth. >> brooklyn is hot. what industries are spending the most money in terms of real estate right now? you said technology. >> definitely technology. but it's also -- there's a company called we work. it's just taken over 200,000 feet downtown. it's a shared work environment. it's creating affordable space for entrepreneurs. you're seeing that all over the city. and i think, you know, that's part of the diversification of our economy and how we attract and retain the best and the brightest. and those type of innovative companies are coming here because they can find the talent. it's all about the talent. and going back to the mayor, he's going to want to continue that growth. >> we'll see about that. certainly i like this shared space idea. we talked about this the last time you were with us. bill, good to have you on the program. >> thank you. >> so nice to see things recovering one year after sandy. another check on the health of the real estate market when i speak exclusively to the ceo of

owens-corning. they have their finger on the pulse of housing as well. we'll talk with michael thaman coming up. bill? >> all right. heading toward the close here, we have about 18 minutes left in the trading session. the dow has turned negative. the s&p is still positive, not by much, though. any positive for the s&p will be another new all-time high. for years toyota has been royalty in "consumer reports" reviews but it seems the mighty has fallen. we're talking about bad news of the camry models. we have that story coming up next. and after the bell, will the 5c generate high-fives at apple? sales will be in the latest earnings report out in about 45 minutes. our apple corp will sink their teeth into those numbers. to be the world's best sport sedan... ♪

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today "consumer reports" put out and said, we are no longer recommending these vehicles. the tamry, prius v, rav4, accord v6 and altima nissan. combined they're worth more than 1 million vehicles sold this year in the u.s. what's the problem? the camry, "consumer reports" cites poor crash test results. they are taking it from the recommended list. camry has been the best selling car in the u.s. since 1999. accord and altima, they scored too low on reliability for them to be recommended and they are the best selling cars for honda and nissan respectivelily. when you take a look at stocks for toy oat tashgs hon dashgs nissan, they have all moved up with toyota leading the way up 66%. you mentioned the tesla model s and a bit of good news. it was a mixed report card from

"consumer reports." they rate it above average. no problem with the power train. however they say model s owners are reporting more issues. not surprising since they are ramping up production. you'll see more things coming out. like squeaks and rattles, the things that annoy the owners. when you take a look at tesla, this stock has been volatile, all over the place. still down 2% over the last couple of months. big day when it comes to models no longer recommended. >> that is amazing. what a turn around. thank you, phil lebeau, very much. asc settlement with the government could be announced as early as this week. the question becomes what next for that hedge fund company. kate kelly broke the news. she joins us with the latest. >> asc capital may not have to wait much longer for much anticipated settlement with the government. an agreement with federal prosecutors could come as early as this week, i'm told. accompanied by a ten-figure fine and a guilty plea. a fine of that size, of course,

is not insignificant, but it's the admission of guilt that could have far broader ramifications. a hedge fund that bleeds guilty to fraud can no longer operate as a reg sfered investment adviser with money under management, so that means in the wake of a settlement like this, sac must become a family office handling only founder steve cohen or family money, or close down completely. reopening is an option. with investor redemptions under way and should be completed by wintertime, sac should still have $7 to $8 billion in assets to trade. but cohen himself would be under fire thanks to an s.e.c. lawsuit that will be picked up after the federal settlement is done, if it is done. if they bar him from the securities industry, as they said they are seeking to do, that could make life as a new hedge fund manager exceedingly

difficult if not impossible. >> thank you. consumers love the ipads, iphones, ipods, we know that. how are they feeling about icahn. >> that's good. legendary activist investor is talking about proxy fights to force changes at apple. after the earnings are out, two pros will debate icahn. [ coughs, sneezes ] i have a big meeting when we land, but i am so stuffed up, i can't rest. [ male announcer ] nyquil cold and flu liquid gels don't unstuff your nose. they don't? alka seltzer plus night fights your worst cold symptoms, plus has a decongestant. [ inhales deeply ]

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joining us is joaquin lan and matt. thank you for joining us. how are you telling clients, to big-end clients, to allocate capital right here? >> we're telling them we're looking at the global economy improving. the fed has our back. look at the global cyclicals, whether industrials, material, information technology. we're encouraging them and

putting money to work. >> you still have 1830 on your target for the s&p the end of next year and 1950 is your target. the fed will be tapering in there. wouldn't that take gains out of the market? >> i think it will. when it does, it will be opportunities to step back in foreclients who want more exp e exposure or missed it. i think the tapering is still a positive sign. when we talk about tightening, then we get later innings. tapering is early innings and good for equity stocks. >> matt, what kind of conviction are you seeing in the market? >> there was rumor they were talking about increasing the amount of stimulus going forward. wouldn't that be funny. >> more acuity. >> we're not getting any conviction at all. i think it was the slowest day in the vix options of the year. it's not a surprise down here. we're all looking to trade something. hopefully apple spurns us. we're looking forward to it. who's investing? we're not seeing the slow.

it's toward the end of the year. people are trying to lock in their gains. how certain are you going forward about what the government numbers will be -- >> you don't think the fed will do anything this week, sdmou. >> i don't think so. i don't think they can after the government shutdown and new chairman coming in. it would be crazy time to be doing something like that. >> what about apple? would you buy apple here? >> we like technology in general. look at globally, two-thirds of the world has never logged onto the internet. we're seeing online demand in network, servicing, content. >> speaking of apple, some high-profile momentum stocks have fallen out of favor the last couple of weeks. why? tesla, netflix -- >> these things were flying all year. they probably got a little ahead of themselves. they are backing off a little. apple was the only one down on the year. the only problem with apple is they already said they would meet high end of guidance for this quarter. >> they better. >> when you go out to december.

that will be interesting to look at from apple. >> thank you. >> thank you so much, joe, matt. >> we'll take a break. s&p still in record territory. we'll come back with closing countdown in a moment. >> apple earnings are out. after the bell we have an all-star lineup of investors and analyst telling you whether this is the stock to own now. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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90 second left. looks like the dow wants to come back. i want to focus on the s&p right here because that's been in record territory. had a grit couple of months. september and october traditionally very tough months for the stock market. s&p has had a very good period over these two months. look at this. we're starting to move higher at the close, so it looks like we may, barring something in the last minute, finish in all-time high territory. apple will set the tone for tomorrow, with earnings out tonight. whispernumber.com tells me it's expected to be higher, in the $8 range, maybe $8.20. revenue expected to be $36.93 billion. long distance runner peter costa, what are you expecting from apple? >> you know what, having talked to a couple of people saw a limited survey, their phones are flying off the shelf. they can't keep them. i think above $8. even at the high end. >> you agree this could set the

tone for tomorrow. >> i think so. i think the market up 5% or 10% minimum on the s&p. and i think apple will definitely beat. >> we'll find out. should be out any moment. we'll see the dow finishing virtually unchanged in the s&p 500 in all-time high territory. here's the second hour of k "closing bell" with maria bartiromo. i'll see you tomorro 4p it's 4:00. do you know where your money is? it looks like we are closing in unchartered territory once again. even with all of the moves, volatility earlier in the day, it's not ending far from where it started. nasdaq moved into negative territory late in the day, finishing downhr